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Reform of unfair dismissal in 2026: what is being debated

Europe is pushing for compensation for unfair dismissal to be deterrent and to take your personal situation into account. We explain what is being debated and what to do.

By BBM Abogados · · 6 min read

Key points

  • Europe has pointed out that the fixed compensation for unfair dismissal in Spain may be insufficient to repair the real harm caused.
  • Additional compensation is being debated that would take your personal circumstances into account and have a deterrent effect on the employer.
  • For now it is a reform in progress: the fixed compensation of 33 days per year remains the legal benchmark in force.
  • If you are dismissed, the deadlines are very short: you have 20 working days to make a claim, so it is best to act quickly.

This article is for general information only and does not constitute legal advice. Every situation requires individual analysis: to assess your specific case, get in touch with us.

Unfair dismissal in Spain has been at the centre of legal and political debate for some time now, and 2026 is no exception. Pressure from Europe for compensation to genuinely repair the harm suffered by those who lose their job has reopened a fundamental question: is the current model enough?

First of all, an important clarification: what we are going to tell you is a debate and a reform in progress, not something already approved. The rules in force remain the same as always. But it is worth knowing where things are heading, because it may affect how what you are entitled to is calculated.

Where the pressure comes from: the European Social Charter

The origin of it all lies in the European Social Charter and in the decisions of the European Committee of Social Rights, the body that oversees its compliance. This committee has been pointing out that Spain’s fixed compensation, the set formula that multiplies days of salary by years worked, may be insufficient to repair the real harm suffered by a person dismissed unfairly.

The argument is this: an amount calculated automatically does not always compensate what the worker really loses, nor does it deter the company from dismissing without cause. For someone with a low salary and few years at the company, the compensation can fall well short of the harm they suffer.

What is being proposed to change

The discussion revolves around the idea of a dismissal with a reparative and deterrent effect. In practice, the proposal is to supplement the fixed compensation with an additional amount that takes into account each worker’s personal circumstances, for example:

  • Age and the greater or lesser difficulty of finding work again.
  • Family responsibilities.
  • The foreseeable length of time the person will spend without income.
  • The specific harm the dismissal has caused them.

The key word is deterrent: the aim is that dismissing without cause should not “come cheap” for the company, so that compensation stops being a cost that can be calculated in advance and predicted down to the last cent.

BBM
“At BBM Abogados we defend the interests of individuals and businesses in Santander and Cantabria with a close, rigorous and fully transparent approach. If you have doubts about your case, we help you see it clearly.”
BBM Abogados , lawyers in Santander since 1990

What remains in force today

Here it is worth being very clear so that you are not confused. Until a new rule is approved, the legal benchmark remains the fixed compensation of 33 days of salary per year worked, with the caps set by law (and the previous regime of 45 days for time worked before the 2012 reform, in cases where it still applies).

In other words: if you are dismissed today and the dismissal is declared unfair, it is calculated under the current rules. The European debate does not, on its own, change what you receive; the Spanish legislator has to reform the rule.

What it means for workers

If you are a worker, the direction of the debate benefits you in principle, because it points towards compensation that is more closely matched to your real situation. But there are two important caveats:

  • Do not wait around. The reform has not been approved and you do not know when it will be. Your current rights are exercised under the current law and with very short deadlines.
  • Every case is different. If additional compensation comes into play in the future, it will be crucial to document your personal circumstances well. The better prepared your case is, the better.

What it means for companies

If you run a company, the message is one of caution. A model with variable, deterrent compensation introduces more uncertainty into the cost of a dismissal. That reinforces the importance of:

  • Documenting the grounds for any dismissal properly.
  • Assessing the alternatives and risks beforehand.
  • Seeking advice before making the decision, not afterwards.

A poorly grounded dismissal has always been costly; in the scenario being debated, it could be even more so.

What to do in the meantime

The advice, whether you are a worker or a company, is the same: do not make decisions blindly and do not let the deadlines pass. If you have been dismissed, you have 20 working days to challenge it, and that clock does not stop for any legislative debate.

At BBM Abogados, a firm in Santander since 1990, we review your dismissal under the law in force, calculate what you are entitled to and negotiate with the company before going to court. If you want to know how to claim and recover what you are entitled to, or understand the details of dismissals and compensation, we are at your disposal. Call us on 942 36 10 48 or write to us at /contacto/.

Frequently asked questions

Has the compensation for unfair dismissal already changed? +

As of today, the legal benchmark is still the fixed compensation of 33 days of salary per year worked, within the limits set by law. What exists is an open debate and European pressure to supplement it, but until a new rule is approved, that is the amount that applies. Ask us about your specific case on 942 36 10 48.

What is deterrent compensation? +

It is compensation designed not only to compensate the worker, but also to discourage the employer from resorting to unfair dismissals. The idea being discussed is that the amount could be adjusted to each person's personal circumstances (age, family responsibilities, difficulty returning to the labour market) instead of applying a fixed formula for everyone.

Is it better to wait for the reform before claiming for my dismissal? +

No. The deadlines to challenge a dismissal are very short, 20 working days from the effective date, and waiting can cause you to lose the right to claim. The sensible thing is to act under the law in force and, if the framework changes in the future, then assess how it affects you. Do not let the deadline pass.

What do I gain if a lawyer reviews my dismissal? +

A lawyer checks whether the dismissal is fair, unfair or void, calculates the compensation you are entitled to and negotiates with the company before going to court. Many dismissals are settled with a better agreement than the initial offer. At BBM Abogados, in Santander since 1990, we review your case; write to us at /contacto/.

Have a similar case?

Our team of lawyers in Santander advises you with no obligation. Tell us your situation and we will let you know how we can help.

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